'Audit cap need not be a zero-sum game'
The chief executive of Independent Audit says a cap on audit liability would be of benefit if accompanied by audit reports which actually included 'meaningful information content'.
Jonathan Hayward said granting firms a limit on their liability would be met by objection over the idea that ‘auditors profits go up while their responsibility to investors goes down’.
But, he said in a letter to the Financial Times, it need not be a ‘zero sum game’.
‘The government should allow auditors the lower liability in return for audit reports that actually communicate something useful.’